INDIAN CONTRACT ACT, 1872: COMMUNICATION BUSINESS

REGULATIONS

2.3 COMMUNICATION AND REVOCATION OF OFFER AND

ACCEPTANCE
When the contracting parties are facing each other, there is no problem of communication,
because there is instantaneous communication of offer and acceptance.
Mode of Communication [Sec. 3]
Section 3 of the Act refers to the two modes of communication:
1. Communication by act, and
2. Communication by omission.

Act includes by conduct or by words, written or oral. So communication can be by letter,

telegram, telephone etc. Omission includes conduct or forbearance on the part of one
person which has the effect of communication.

When is Communication Complete [Sec. 4]

1. Communication of Offer
The communication of an offer is complete when it comes to the knowledge of the person
to whom it is made.
2. Communication of Acceptance
Communication of an acceptance is complete:
a) as against the proposer, when it is put in course of transmission to him so as to be out of
the power of the acceptor to withdraw the same; and
b) as against the acceptor, when it comes to the knowledge of the proposer.
3. Communication of Revocation
Revocation means “taking back” or “withdrawal”. It may be a revocation of offer or
acceptance. The communication of a revocation is complete:
a) as against the person who makes it, when it is put into a course of transmission to the
person to whom it is made, so as to be out of the power of the person who makes it; and
b) as against the person to whom it is made, when it comes to his knowledge.